The new program, coming into effect July 1, 2016 rolls three former benefit plans introduced by the Conservatives, including the Universal Child Care Benefit and the income-splitting scheme for two-parent households, into a single monthly payment.
Families with children under age six will receive an annual tax-free benefit of up to $6,400 per child. Those with children between the ages of six and 17 will receive up to $5,400 annually. Households with children with annual income below $30,000 will receive the maximum payment.
The program, which was praised by anti-poverty groups, will cost taxpayers $22.4 billion more than the previous government’s child benefit schemes, or $4.5 billion each year.
“That is money in the pockets of Mom and Dad,” Morneau said. “Money that can go directly to eating healthier food, paying the rent and buying new clothes for back to school.”
Canada Child Benefit Explained